Save your Home and Skip the Diamond Ring Present this Year
Can you live in a diamond ring? Can a diamond ring keep you or your kids warm and dry?
The answer is no. So why would you waste money on a Christmas gift this year that does you no good?
I’d suggest that instead of wasting money on diamond rings, you should consider doing one of the following things that will actually help you protect your biggest investment, your home.
Quite simply, make an extra house payment this month. Save the money on presents you do not need and drop a grand or two on your house. This is good for your own finances as it increases your equity, reduces your total interest expense and helps the US economy by putting money in the sector of the economy that needs it the most right now.
If you are not sure about your own finances as you look 3-9 months into the future, then take that same couple thousand dollars that you might spend on Christmas and park that money into a 3 month CD. Renew that CD every 3 months, and if by chance you come up short for your house payment, this becomes your financial reserve for a rainy day. It might just save you from foreclosure.
Similarly, if you want to help your finances tremendously, pay that money towards your credit card debt, do not spend any money on your credit cards and reap the rewards.
